According to Grayscale research head Zach Pandl, JPMorgan Asset Management has included Bitcoin in its 2027 long-term investment assumptions with an estimated 10% compound annual return, higher than most other asset classes. However, JPMorgan excluded Bitcoin from its main portfolio models due to a 55% annualized volatility rate and unstable correlation with other assets at 33% with U.S. large-cap stocks.
For context, JPMorgan's 2027 return projections for other assets include U.S. large-cap stocks at 7.5%, private equity at 9.8%, a 60/40 stock-bond portfolio at 7%, and gold at 5.5%.